Here's what your car and home insurance provider may not tell you
You're online, shopping for car and home insurance quotes. Doing it alone can be difficult. If you're new to insurance, you might not fully understand the differences between various policies, your personal needs, or where to look. Do you know how homeowners and car insurance policies work? Is your new provider your best resource? Well, yes and no. An insurance broker is a huge help in the insurance buying process. An insurance broker, like our experts here at Panda7, has years of experience selling insurance and advising newcomers to the industry, and is more than happy to help.
Where do our brokers excel when your car and home insurance providers might fail you? Read on for tips and tricks on buying insurance, but you need a little expert nudge in the right direction. We're here to help.
No. 1: Notice of claim – never file a claim for a loss of less than $1,000
When something disastrous happens and damage results, your first instinct might be to run to your insurance provider. Hold on! If the total damages are less than $1,000, you should refrain from filing a claim. But why? Well, because people usually have a deductible of between $250 and $500, sometimes even $1,000 or more, that you'll have to pay for repairs anyway, meaning you'll still be paying a significant amount out of pocket. And You will need to obtain a premium increase. Over time, these costs can exceed what you received for a claim under $1,000. For minor repairs and damage, you should have an emergency fund you can draw upon.
No. 2: Working with a broker is not the same as working with an underwriter or an agent
Yes, brokers work on commission. But compared to the amount you'll save, the cost is negligible. The net savings are always worth it!
No. 3: Some insurance premium factors are beyond your control
Your rates have gone up. Your first thought might be, "But why? I haven't filed a claim!" Well, here's the thing: not all premium factors are within your control. In fact, factors like climate change, the increasing frequency of catastrophic weather events causing property damage worldwide, insurance fraud rates across the country, and rising rebuild costs all affect our rates, whether we see it on a daily basis or not, and we may not even realize it.
Yes, obviously personal changes will affect your rates, such as starting to drive more, moving house, adding a young driver to your auto insurance policy, or recently being in an at-fault accident with thousands of dollars in damages—but these are obvious. What's less obvious is when supply chain issues, combined with high demand for building materials, cause the cost of rebuilding our homes to skyrocket, making them much more expensive to insure.
No. 4: You may be able to opt for a credit score for a reduced premium
Your credit score isn't usually factored into your rates, but you may be able to sign up with some providers for a credit check and, if your score is good enough, be rewarded with a significant discount. A good credit score can get you better rates on your car loans, mortgages, and personal loans. If your credit score isn't that high, you can do your part by paying all your bills on time, which can help you qualify for lower premiums in the future. Please note that a credit check can only be used for discounts on home insurance policies.
No. 5: Even if your coverage is denied, there are still ways to find insurance
Some people have a criminal record or numerous convictions on their driving record that make it difficult to find insurance. It's even possible that an insurance policy has been canceled due to non-payment. This kind of thing can remain a "black mark" on your record and make future insurance companies hesitant to insure you. A good option for you is to look into high-risk insurance markets. A broker can help you search these markets to find the right option for your situation. You'll have to pay a much higher premium in cases like these, but your overall coverage options will be much less expensive than before.
Panda7 is made up of a team of friendly and knowledgeable brokers who will do their best to provide you with the best customer experience. We want you to understand your home and auto insurance in a way that gives you peace of mind knowing you're getting the best rates for the best coverage. Get a free home or auto quote with us to get started today.